- Dallas will host the ULI Conference in October
- Rehab builds are changing, but the factors remain the same
- Successful renovations have to make sense for their area
Weaver’s Tax Partner, Rob Nowak, and Partner-in-Charge of Real Estate and Construction Services, Howard Altshuler, discuss upcoming events and the benefits of rehabbing versus building new on this episode of Location Cubed.
The ULI Conference returns to Dallas for the first time since 2016. Altshuler is working on a program called "rEvolution of the Workplace." The panel for this program will highlight changes in work habits and office leases.
During their discussion, Altshuler and Nowak make the case for looking toward renovations and adaptive re-uses of spaces. “We have a few clients that do renovation work,” said Altshuler. Weaver supports clients in different renovation projects. Some focus on upgrading multi-family units to increase the rent and property. Others take on “...the larger signature projects going on with respect to office buildings,” said Altshuler.
Successful renovations have to make sense for the area. You wouldn’t want to place a multi-family unit in industrial and office space where there aren’t the necessary amenities to support residents. Instead, the space may be suitable for a retail center or a hotel. But with recent trends related to rezoning and fulfilling the needs that exist in a particular area, some projects are starting with questions like “...How creative can we be in creating value of the property to put something else there?” says Nowak.
“Historically, it’s cheaper to build something new than it is to renovate,” said Altshuler. There are a lot of extra fees involved in rehab. “You have to balance the cost of building new or rehab versus building the asset from the ground up. Consider acquiring the asset, re-zoning, re-entitlement processing, incurring rehab costs, and being down for a period of time.” said Nowak. However, new-age renovations and rehabs are going to look different than their traditional counterparts and Altshuler and Nowak are sure that the project’s viability depends on what the purchase is, what the plan is and whether the numbers work.